France: French Government Seeks To Crack Down on Social Security Contributions Fraud

To try and reduce the deficit resulting from fraud by individuals but also organizations with regards social security contributions and benefits, this new law provides companies with certain new rights but also heightened control.

With regards new rights, companies will now be able to cease maintaining the salary of employees on sick leave if the employee is deemed not to be sick following a visit by a doctor requested by the company.

Companies will also be able to claim reimbursement of their contribution to an employee’s training course financed via their individual training account (CPF) if the employee does not sit the required end of training exam.

This new law does however also require companies to ensure that they are fully compliant with regards their social security contributions as heightened controls by the social security authorities (URSSAF) are to be expected.

Risk areas include the use of contractors, the monitoring of working time and proper payment of overtime and the selection of training providers.

It should be noted that the Constitutional Court has been asked to review parts of this law and has one month in which to respond. Its review is not expected to impact the above.

 

Key Action Points for Human Resources and In-House Counsel

Check that that you can justify recourse to contractors and ensure that your working time monitoring system allows you to exclude any overtime claims. Carry out an audit of your training providers if such training is financed by the employees’ CPF accounts.